Decision-Making Types and Characteristics

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Questions and Answers

What distinguishes a programmed decision from a nonprogrammed decision?

Nonprogrammed decisions have well-defined goals.

Programmed decisions are made at higher organizational levels.

Nonprogrammed decisions are based on strict decision rules.

Programmed decisions are repetitive and routine. (correct)

Which characteristic is typically associated with nonprogrammed decisions?

Poorly structured situations (correct)

Minor consequences

Clear and specific goals

Readily available information

What is a key attribute of programmed decisions relating to time for solution?

Require limited information

Allow for a short time frame for decision-making (correct)

Require extensive creativity

Often lead to major consequences

Which of the following best describes the goals of programmed decisions?

Clear and specific Signup and view all the answers

In which organizational level are programmed decisions predominantly made?

Lower levels Signup and view all the answers

How do nonprogrammed decisions generally differ in terms of information availability?

Information is often unavailable or unclear. Signup and view all the answers

Which approach is generally used for solutions in nonprogrammed decisions?

Creativity and judgment Signup and view all the answers

What type of consequences do nonprogrammed decisions typically lead to?

Major and considerable Signup and view all the answers

What does evidence-based management (EBM) prioritize in decision making?

The best theory and data Signup and view all the answers

Which of the following best describes the concept of 'bounded rationality'?

Limiting the information considered to a manageable subset Signup and view all the answers

What does the term 'satisficing' refer to in decision making?

Choosing an alternative which minimally meets requirements Signup and view all the answers

In evidence-based management, what is encouraged among team members?

Speaking the truth even if it is uncomfortable Signup and view all the answers

What does 'suboptimizing' imply in decision making?

Deliberately choosing less than the best outcome to avoid wider issues Signup and view all the answers

What is a primary component of the evaluation process when making a decision?

Describing the anticipated outcomes of each alternative Signup and view all the answers

Which of the following is NOT a principle of evidence-based management?

Utilizing untested beliefs for decision making Signup and view all the answers

Which of the following statements aligns with the administrative model of decision making?

Managers use heuristics and accept satisfactory solutions. Signup and view all the answers

What does planning often require to address unexpected situations?

A contingency plan Signup and view all the answers

What is a key aspect of creating a culture in evidence-based management?

Prioritizing fact-based discussions and decisions Signup and view all the answers

What is post-decision dissonance?

Doubt about a choice that has been made Signup and view all the answers

Which of the following is a strength of the rational approach to decision making?

It encourages a logical, sequential process Signup and view all the answers

What is a noted weakness of the rational approach?

It often has rigid and unrealistic assumptions Signup and view all the answers

Why might information be limited in the decision-making process?

Because time and cost constraints affect the analysis Signup and view all the answers

Which of the following best captures a challenge of quantifying alternatives?

Not all alternatives can be easily quantified Signup and view all the answers

What does uncertainty in the decision-making process imply?

Outcomes are unpredictable Signup and view all the answers

What is a primary consequence of groupthink in decision-making?

Failure to perceive nonobvious risks Signup and view all the answers

Which scenario is most likely to lead to groupthink?

A highly cohesive group under time pressure Signup and view all the answers

What role can be assigned to mitigate groupthink?

Devil’s advocate Signup and view all the answers

Which of the following is NOT a recommended prescription for preventing groupthink?

Allow dissenting opinions to be ignored Signup and view all the answers

How can periodic subgroup discussions help in overcoming groupthink?

They allow for more ideas to be presented. Signup and view all the answers

Which of these actions could enhance the quality of decision-making in groups?

Discussing deliberations with a trusted outsider Signup and view all the answers

What is a defect associated with groupthink?

Rejection of potential setbacks Signup and view all the answers

What might occur if a group fails to incorporate contingency planning due to groupthink?

Inability to respond to unforeseen events Signup and view all the answers

What is a benefit of employee participation in the decision-making process?

Leads to better solutions in judgmental tasks Signup and view all the answers

Which of the following is a drawback of participation in decision making?

Higher risk of polarization Signup and view all the answers

What technique is specifically used to generate a large number of ideas during the decision-making process?

Brainstorming Signup and view all the answers

Which method involves discussions and voting to reach a decision among group members?

Nominal group technique Signup and view all the answers

What is a key characteristic of the Delphi technique?

Systematic gathering of expert opinions for forecasts Signup and view all the answers

What should be done to mitigate groupthink during decision-making processes?

Setting up several independent groups to study the same issue Signup and view all the answers

Participating in decision-making can result in which of the following?

Increased interest and commitment to the task Signup and view all the answers

Which of the following is NOT a technique for group problem solving?

SWOT analysis Signup and view all the answers

Study Notes

Types of Decisions

Programmed Decision: Frequent decisions with established rules.
- Decision Rule: Guidelines for selecting alternatives based on specific characteristics.
Nonprogrammed Decision: Rare decisions with no established rules.

Characteristics of Decisions

Programmed Decisions:
- Well-structured, repetitive, clear goals.
- Information readily available, minor consequences, made at lower organizational levels, quick solutions using set procedures.
Nonprogrammed Decisions:
- Poorly structured, new and unusual, vague goals.
- Information often unclear or unavailable, major consequences, made at higher organizational levels, longer resolution times using judgment and creativity.

Decision-Making Conditions

Information availability varies on a continuum, affecting decision-making complexity.

Evaluating, Choosing, and Implementing

Evaluation Process: Involves anticipating outcomes, costs, uncertainties, and risks for each alternative.
Contingency Plans: Backup actions if primary decisions fail.
Post-Decision Dissonance: Doubt arising after a decision has been made.

Strengths and Weaknesses of the Rational Approach

Strengths: Promotes logical, sequential decision-making; relies on thorough analysis and factual information.
Weaknesses: Assumes unrealistic conditions; limited information due to constraints; quantification challenges; unpredictable outcomes.

Evidence-Based Decision Making (EBM)

Commitment to using the best evidence and data for decisions.
Encourages truthfulness, acknowledgment of risks, and avoidance of untested beliefs and blind benchmarking.

The Administrative Model

Bounded Rationality: Managers process only a limited subset of information.
Suboptimizing: Accepting less than optimal to prevent negative consequences in other areas.
Satisficing: Searching for alternatives until a minimally acceptable solution is found.

Group Decision Making

Groupthink: Poor decision-making due to high cohesion and directive leadership under time pressure. Leads to:
- Fewer considered alternatives.
- Ignoring risks and expert opinions.
- Lack of contingency planning.

Preventing Groupthink

Leader Prescriptions: Encourage critical evaluation, impartiality, and assign a devil’s advocate.
Individual Prescriptions: Foster critical thinking and discussions with outsiders.
Organizational Prescriptions: Multiple independent groups studying the same issue, training on groupthink prevention.

Participation in Decision Making

Benefits: Enhanced solutions, greater engagement in tasks.
Drawbacks: Risks of polarization and groupthink.

Group Problem Solving Techniques

Brainstorming: Generating diverse ideas during decision-making.
Nominal Group Technique: Iterative idea generation, discussion, and voting.
Delphi Technique: Systematic expert judgment gathering for forecasting purposes.

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Description

This quiz explores the types of decisions, namely programmed and nonprogrammed decisions, along with their characteristics and decision-making conditions. It also delves into the evaluation, choosing, and implementation of decisions in various organizational contexts.